VESTL.IS WACC - Weighted Average Cost of Capital

The WACC of Vestel Elektronik Sanayi ve Ticaret AS (VESTL.IS) is 24.5%.

The Cost of Equity of Vestel Elektronik Sanayi ve Ticaret AS (VESTL.IS) is 33.60%.

The Cost of Debt of Vestel Elektronik Sanayi ve Ticaret AS (VESTL.IS) is 18.50%.

	Range	Selected
Cost of equity	31.30% - 35.90%	33.60%
Tax rate	11.10% - 12.30%	11.70%
Cost of debt	12.90% - 24.10%	18.50%
WACC	20.9% - 28.2%	24.5%

WACC

VESTL.IS WACC calculation

Category	Low	High

Long-term bond rate	21.4%	21.9%
Equity market risk premium	10.2%	11.2%
Adjusted beta	0.98	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	31.30%	35.90%

Tax rate	11.10%	12.30%
Debt/Equity ratio	1.11	1.11
Cost of debt	12.90%	24.10%

After-tax WACC	20.9%	28.2%


Selected WACC	24.5%

VESTL.IS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for VESTL.IS:

cost_of_equity (33.60%) = risk_free_rate (21.65%) + equity_risk_premium (10.70%) * adjusted_beta (0.98) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.